Xiaomi SU7 Ultra controversy escalates: Hundreds of car owners demand refunds, urging Lei Jun to "stay sincere".

Before the new car YU7 was released, some Xiaomi SU7 Ultra owners reported that the new car did not match the advertisement and requested a refund.

On May 12, Yang Lei (pseudonym), the owner of a Xiaomi SU7 Ultra, stated in an interview with The Paper that he spent an additional 42,000 yuan to select the carbon fiber dual air duct front hood when ordering the car. Previously, Xiaomi promoted this hood by introducing that it "adds 2 aerodynamic air ducts, efficiently directing airflow at the front," and also mentioned that "the internal structure has been changed, directing airflow to cool the wheel hubs," etc.

Xiaomi's official introduction of the carbon fiber dual air duct front cover for the SU7 Ultra.

"The reason for booking the car at that time was because I was attracted to the dual duct hole design, which is also the soul of this car," Yang Lei told reporters.

However, many automotive bloggers have tested the actual vehicle and found that the so-called hole below only has a very small air duct, and disassembly shows that the air duct is not connected to the cooling system or downforce structure.

This also means that the so-called dual air intake hood may not be as advertised. For many car owners, its decorative function outweighs its practical value. In the car owner rights protection group where Yang Lei is located, nearly 400 car owners have collectively demanded a refund.

"According to rough estimates, the cost of the existing Xiaomi SU7 Ultra front hood is approximately 10,000 yuan, which is a huge gap compared to the selling price of over 40,000 yuan," Yang Lei stated.

On May 7, Xiaomi Automobile issued an apology statement regarding the controversy related to the perforation, stating that the previous information was not clearly expressed: the carbon fiber dual air duct front hood not only meets the requirement of replicating the external shape but also provides some airflow discharge and assists in front cabin heat dissipation.

For car owners, Xiaomi will take compensation measures: For undelivered orders, a limited-time modification service will be provided, allowing a switch back to the aluminum front hood; for users who have already picked up their cars and those who choose options before the end of this limited-time modification, 20,000 points (approximately 2,000 RMB) will be given as a gesture of goodwill, but it was not mentioned whether a return of the car is possible.

Many car owners are not satisfied with the above compensation plan: the compensation of 20,000 points is significantly lower compared to the optional price of 42,000 yuan. Additionally, switching to an aluminum hood requires re-queuing, with a waiting period of 30-40 weeks.

"I originally chose to buy a car because of the pursuit of hole-punch design. The modification service provided by Xiaomi has lost the original meaning of my car purchase, and the offered compensation of 2000 yuan feels perfunctory." Yang Lei admitted, "High-end car owners care more about the status symbol and emotional value that driving brings. The existing vehicle's hole-punch design does not match its name and will affect the driving experience. Therefore, our demand is to directly return the car."

"I hope Lei Jun can remain sincere." The car owner called out to Lei Jun, saying, "Facing the doubts head-on is the only way to restore reputation; if he continues to evade, it may affect the sales of the SU7 series and future high-end models."

Zhai Wei, executive director of the Competition Law Research Center of East China University of Political Science and Law, told the surging news reporter that according to the analysis of existing public information, when Xiaomi Auto promoted the "hole digging machine cover", there was a certain degree of one-sided introduction of products and the use of ambiguous and vague language expressions.

This is suspected of constituting improper publicity in violation of the Advertising Law and the Anti-Unfair Competition Law, and is also suspected of harming consumers' right to know. If it is ultimately determined that the circumstances are serious, then the act may even constitute false advertising.

Zhai Wei believes that regarding the compensation plan proposed by Xiaomi, car owners have the right to independently decide whether to accept this plan based on the Consumer Rights Protection Law. According to the principle of compensating for tort losses, in cases where the car owners' property rights are damaged due to Xiaomi's improper advertising, Xiaomi should be responsible for fully compensating the car owners' losses.

If Xiaomi's compensation plan cannot fully compensate the losses suffered by the car owner, the car owner can request Xiaomi to modify the plan to increase the compensation, or can seek mediation through the Consumer Protection Committee or pursue judicial litigation to demand full compensation for their losses from Xiaomi.

The Xiaomi SU7 Ultra is the highest-end model in the Xiaomi SU7 series. On February 27, the Xiaomi SU7 Ultra was launched with a starting price of 529,900 yuan, and the next day, the number of pre-orders surpassed 15,000 units. However, Xiaomi has not disclosed the latest order data for the SU7 Ultra.

According to Xiaomi Automobile's Weibo news, Xiaomi's first SUV YU7 is expected to be officially launched in June or July of this year. Previously, Xiaomi has also repeatedly stated that the release date of the new car will not change.

Binding with Lei Jun's IP is a "double-edged sword".

Previously, Xiaomi Motors once became a top player in the automotive circle, boasting a high level of fan loyalty. Why has it recently been mired in controversy?

Pan Helin, a member of the Expert Committee on Information and Communication Economy of the Ministry of Industry and Information Technology, told The Paper that car manufacturers need to create "differences" and "personalization," and the support for differentiation and personalization comes from the technical strength of the company. Xiaomi's car manufacturing needs to maintain long-term R&D patience; the most important aspect of car manufacturing is safety, and it cannot rely solely on "gimmicks," but rather must be practical.

According to internet analyst Ding Daoshi, the competition in the new energy vehicle sector has become quite intense. Recently, Xiaomi's negative public sentiment may have a certain impact on sales, "especially since Xiaomi is about to launch its new car YU7, which is an SUV product, in a market segment that is highly competitive, directly competing with popular models like Tesla Model Y, Zhijie R7, Wencui M5/M7, and NIO ES6, undoubtedly facing greater competitive pressure than ever before."

In addition, the recent high-speed car accident involving the Xiaomi SU7 has sounded an alarm for car manufacturers in their promotion of intelligent driving. Subsequently, several car manufacturers replaced the previous terms "autonomous driving" and "high-level intelligent driving" with "assisted driving" in their promotions, including Xiaomi, which also changed "intelligent driving" to "assisted driving."

"Xiaomi has a community-oriented characteristic in fan operation, as these fans create content powered by their love, which has also become a part of Xiaomi's product culture." A senior internet observer admitted to reporters, "However, after negative events occur, it can lead to brand disillusionment, and fans will reflect on their previous enthusiasm. This process is the moment when the brand truly faces its test."

"Xiaomi's marketing strategy is strongly tied to the Lei Jun IP, which is a double-edged sword." He stated that the advantage is that it can enhance the overall brand awareness of the company's products through a celebrity entrepreneur, while the downside is that when negative events occur, Lei Jun becomes the first person accountable. Currently, a significant portion of the negative public sentiment towards Xiaomi also directly points to Lei Jun himself. "Both Xiaomi and Lei Jun should consider how to strike a balance between the corporate brand and the entrepreneur IP."

Xiaomi's automotive division has maintained strong growth, but sales saw a slight decline in April, with deliveries exceeding 28,000 units. From January to April of this year, Xiaomi's cumulative sales have already surpassed 100,000 units.

(Source: The Paper)

Source: Eastmoney.com

Author: The Paper